Felda begins disposal of assets to accommodate liabilities

Bernama
(Updated )

The Federal Land Development Authority (Felda), which is currently embroiled in allegations of mismanagement and mounting debts, has commenced the sales of non-strategic assets to accommodate its liabilities, says chairman Megat Zaharuddin Megat Mohd Nor.

“We have started the process of selling non-strategic assets both within and outside the country and this process will probably runs until the middle or end of next year.

"It is hoped that the prices we get from the sales of these assets can accommodate our liabilities, as well as help ease the burden of settlers who are saddled with low oil palm prices," he told reporters on the sidelines of the Kolej Yayasan Felda’s convocation in Kuala Lumpur today.

In September, Felda announced the disposal of its assets, including hotels, apartments and a student hostel totalling about RM2.2 billion, which was expected to help cut its debt to RM6.5 billion by year-end from RM8.05 billion debt recorded as at June 30.

Megat Zaharuddin said with this in place, the government agency was on track to become profitable and be able to turn around the organisation in at least the next two years.